Pacific Geoinfo Corp.
TSX VENTURE : PGO

Pacific Geoinfo Corp.

January 02, 2007 15:14 ET

Pacific GeoInfo Announces Completion of Sale of Joint Venture Interest in China Production Facility

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 2, 2007) - Pacific GeoInfo Corp. (the "Company") (TSX VENTURE:PGO) is pleased to announce that, further to shareholder approval received at the Company's annual general meeting held on December 27, 2006, the Company completed on December 29, 2006 the sale of its joint venture interest in the geospatial processing production facility in China (the "Production Facility") to its joint venture partner, EarthData Pacifica, Inc. ("EDPI"), an affiliate of EarthData International Inc. ("EarthData").

The transaction involved the sale of the Company's shares in and shareholder loans to EarthData Pacifica, Co. ("EDPC"), the joint venture company that the Company formed with EDPI, for Cdn$2,000,000 payable in cash in installments (the "Transaction"). The first installment of $500,000 was paid on the closing of the Transaction and the last installment will be due in September 2007. The Company has secured EDPI's payment of the remaining cash installments by way of EDPI's promissory note to the Company and a guarantee from EarthData. The Company has agreed to not compete for a period of three years after closing of the transaction (the "Non-Compete Period") in the business of map processing, as conducted by any of EDPI or its affiliates, successors and assigns (collectively, the "EarthData Parties") currently or at any time during the Non-Compete Period, anywhere in the world where the EarthData Parties engage in such business except in China.

The Company's sale of the joint venture interest in the Production Facility constituted a disposition of all or substantially all the undertaking of the Company. The Company intends now to seek new business opportunities with the proceeds from the sale. In the meantime, the Company's listing on the TSX Venture Exchange will be transferred to NEX effective January 3, 2007 and the Company's shares will trade on NEX under the symbol "PGO.H" (instead of "PGO") until such time as regulatory approval is obtained for a new business.

ON BEHALF OF THE BOARD

Lian Li, President and Director

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific GeoInfo Corp.
    Lian Li
    President and Director
    (604) 689-9113
    (604) 689-9022 (FAX)
    Website: www.pacificgeoinfo.com